You'll be realizing and spending the internal realized capital
gains distributions though.
Not exact matches
However, if you get back all of your cost (or other basis), you must report future nontaxable
distributions as capital
gains even
though Form 1099 - DIV shows them as nontaxable.
The fund's significant
distributions, even
though mostly in the form of long - term capital
gains, make it more suitable for non-taxable accounts.
It's not a great dividend fund
though — its net dividend income after expenses is limited, so the cash
distributions to investors mostly consist of capital
gains.
For example, if a fund has its year end
distribution on 12/30 and you buy on 12/29, you may get the tax bill for the
distribution even
though you didn't any
gains in the fund over the day you held it.
But leakage of methane — a more powerful,
though shorter - lived greenhouse gas — throughout the production and
distribution systems cancels out some of those
gains.